TNAG-1487-FCO40-2044-Hong-Kong-banking-Banking-Bill-1986-1986 — Page 45

A170

Ord. No. 27/86

Conditions

regarding overseas

branches and

overseas

representative

offices.

BANKING

(2) Subsection (1) applies to every authorized institution incorporated in Hong Kong whether the institution was licensed or registered before, on or after the commencement of this Ordinance, and subsections (4) and (5) apply to an approval granted under subsection (1) whether the approval was granted before, on or after such commencement.

(3) Approval under subsection (1) shall be deemed to have been granted in respect of any overseas branch or overseas representative office lawfully established prior to the commencement of this Ordinance.

(4) The Commissioner may at any time, by notice in writing served upon an authorized institution, attach to an approval granted under subsection (1), or deemed to have been granted under subsection (3), in respect of any overseas branch or overseas representative office thereof such conditions, or amend or cancel any conditions so attached, as he may think proper.

(5) The Commissioner may at any time revoke, in such case as he thinks fit, an approval granted under subsection (1), or deemed to have been granted under subsection (3), in respect of any overseas branch or overseas representative office.

(6) Where the Commissioner refuses to grant approval under subsection (1) or revokes an approval under subsection (5), he shall notify the authorized institution concerned in writing of the refusal or revocation.

(7) Any authorized institution aggrieved by the refusal to grant approval under subsection (1) or by the revocation of an approval under subsection (5) by the Commissioner, or by any conditions to which an approval is made subject by the Commissioner under subsection (4), may appeal to the Governor in Council against the refusal, the revocation or the conditions, but that refusal, that revocation or, as the case may be, those conditions shall take effect immediately, notwithstanding that an appeal has been or may be made under this subsection.

(8) Every director and every manager of an authorized institution which contravenes the condition in subsection (1) or any condition attached under sub- section (4) commits an offence and is liable-

(a) on conviction upon indictment to a fine of $200,000; or

(b) on summary conviction to a fine of $50,000.

and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.

50. (1) Every authorized institution incorporated in Hong Kong which main- tains an overseas branch thereof shall be subject to a condition that-

(a) the institution shall submit to the Commissioner a return in such form, and at such intervals, as he may specify showing the assets and liabilities of the overseas branch;

(b) the institution shall submit to the Commissioner such further information as he may consider necessary for the proper understanding of the functions and activities of the overseas branch, and that such information shall be submitted within such period and in such manner as the Commissioner may require;

(c) if the Commissioner requires any return submitted to him pursuant to paragraph (a), or any information submitted to him pursuant to a require- ment under paragraph (b), to be accompanied by a certificate of an auditor, the institution shall submit a certificate of the auditor appointed under section 59(1) or of the auditors appointed under section 59(1) and (2), as the case may be, as to whether or not, in the opinion of the auditor or auditors, the return or information is correctly compiled from the books and records of the overseas branch;

(d) if the Commissioner wishes to examine the books, accounts and transac- tions of the overseas branch, the institution shall for that purpose afford the person carrying out the examination at the place where the branch is maintained access to the books and accounts of the branch, to documents of

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BANKING

Ord. No. 27/86

A171

title to the assets and other documents and to all securities held by the branch in respect of its customers' transactions and its cash and to such information and facilities as may be required to conduct the examination, and that the institution shall produce to the person carrying out the examination such books, accounts, documents, securities, cash or other information as he may require:

Provided that, so far as is consistent with the conduct of the examina- tion, such books, accounts, documents, securities and cash shall not be required to be produced at such times and such places as shall interfere with the proper conduct of the normal daily business of the overseas branch. (2) Every authorized institution incorporated in Hong Kong which maintains an overseas representative office thereof shall be subject to a condition that-

(a) the institution shall submit to the Commissioner such information as he may require regarding the functions and activities of the overseas represen- tative office;

(b) if the Commissioner wishes to examine the functions and activities of the overseas representative office, the institution shall for that purpose afford the person carrying out the examination at the place where the representa- tive office is maintained access to the documents maintained by the representative office and to such information and facilities as may be required to conduct the examination, and that the institution shall produce to the person carrying out the examination such documents or other information as he may require.

(3) This section applies to every authorized institution incorporated in Hong Kong whether the institution was licensed or registered before, on or after the commencement of this Ordinance.

(4) Every director and every manager of an authorized institution which contravenes any condition in subsection (1) or (2), or fails to comply with any requirement under those subsections, commits an offence and is liable

(a) on conviction upon indictment to a fine of $200,000 and to imprisonment

for 12 months; or

(b) on summary conviction to a fine of $50,000 and to imprisonment for 6

months,

and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.

(5) If an authorized institution produces any book, account, document, security or information whatsoever under this section which is false in a material particular, every director and every manager of the institution commits an offence and is liable- (a) on conviction upon indictment to a fine of $500,000 and to imprisonment

for 2 years; or

(b) on summary conviction to a fine of $50,000 and to imprisonment for 6

months.

(6) Any person who signs any document for the purposes of this section which he knows or reasonably ought to know to be false in a material particular commits an offence and is liable-

(a) on conviction upon indictment to a fine of $500,000 and to imprisonment

for 2 years; or

(b) on summary conviction to a fine of $50,000 and to imprisonment for 6

months.

and overseas

51. (1) Whenever the establishment by an authorized institution incorporated Fees in respect of in Hong Kong of an overseas branch or overseas representative office is approved overseas branches under section 49(1), the institution shall pay to the Director of Accounting Services representative the fee specified in the Second Schedule in relation to that branch or representative offices. office and thereafter, so long as the branch or representative office continues to be Second Schedule. maintained by the institution, it shall pay to the Director of Accounting Services the fee specified in the Second Schedule on the anniversary in each year of the date on which the institution was licensed or registered, as the case may be.

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